Gilliver calls for a change in mindset during keynote speech at the Building Societies Conference – putting customers at the heart of operations to improve user experience and unlock revenue streams.
In a speech delivered at the Building Societies Annual Conference, Target’s Mark Gilliver warned that building societies need to be addressing user experience or risk losing customers who are increasingly focused on interconnected experiences. Gilliver, from the FCA-regulated business processing and software provider, challenged building societies to define their positions in the market and leverage ‘platformification’ to cement their status in today’s financial services ecosystem or risk being usurped.
Despite research from The Nottingham revealing an increase in consumers taking out products from mutuals, Gilliver argued a new, digitally-driven approach must be taken to ensure customer satisfaction in years to come. Otherwise, he believes, building societies risk losing customers to more digitally-savvy rivals able to offer slicker and a more enjoyable customer experience.
Mark Gilliver, Business Development Director at Target Group said:
“Building societies are dealing with new market forces following the pandemic. Whilst more people are taking an interest in their finances – which is great news for the sector – they’re also expecting levels of service and bespoke products which building societies perhaps are not used to catering for. The bad news for building societies is that new market entrants from outside the sector such as Google and Amazon are. Customers don’t want standard products, they want interconnected experiences – which for building societies, often operating on legacy technology, could be problematic, despite this incredible revenue stream opportunity.”
Gilliver argues that the key to future success will be platformification and leveraging network collaboration. Interconnected experiences such as recommending the right products at the right times or helping guide customers to better outcomes provide added value to customers, and are increasingly in demand.
“If building societies are willing to put the customer at the centre of operations, they could unlock untapped revenue streams. Suddenly, analytics only previously seen in retail could be available. We see great opportunity for personalisation and predictive modelling, all delivered by big data and an in depth understanding of consumers. These enhancements could not only improve the opportunity to cross-sell, but building societies will be able to attract new customers at lower acquisition costs, and then entice them to stay with a bespoke yet comprehensive offering. For those bold enough to change their processes now, they will reap the rewards sooner.”